Legal Question in Constitutional Law in California
We are Architects for a remodel project and have a contract with a consulting Mechanical Engineer. The ME provided services which resulted in improper equipment selection resulting in about $22,000 in damages to our Client. Our agreement with the ME has a collection clause in it basically stating that if we don't pay his bills, then he can recover his Attorney Fees and Costs. Can this be considered as a bilateral clause?..... meaning that if we have a claim against the ME, can werecover our fees and costs? If so, what is the statute that provides for this?
3 Answers from Attorneys
Yes. The attorney fee clause is construed as bilateral. I don't have the citation at hand.
Mr. Stone is shooting from the hip and making a mistake as a result. While he is correct that California statutory law (Civil Code section 1717 if I recall correctly) makes attorneys fees clauses reciprocal, even if they are not reciprocal as stated in the contract. HOWEVER, an attorneys fees clause in a contract does not necessarily apply to any and all breaches or other claims that arise under the contract. If recovery of attorneys fees would be strictly limited to fee collection cases, all it means is that if he sues for his fees and wins, you pay his fees, but if he loses he pays yours even if that's not what the contract says. It would not extend to other claims arising under the contract. Other attorneys fees clauses are much broader, and would cover any claims under the contract - and would then run to your benefit if you prevailed. Then there are clauses that could be interpreted either way and the court would have to make a decision. Without reviewing the actual contract documents, it is impossible to say whether you would have a claim for attorneys fees if you have to sue the ME. I am in my 25th year as a construction attorney and mediator; my last job before opening my own shop was lead counsel for building, design and construction in the San Francisco International Airport General Counsel's Office. So this kind of situation is right up my alley. Feel free to give me a call or email if you would like further assistance.